What is a variable interest entity (VIE) structure for foreign investment in China (PRC)?

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What is a variable interest entity (VIE) structure for foreign investment in China (PRC)? A variable interest entity (VIE) refers to a structure in which an entity established in China which is fully or partially owned by a non-Chinese company, through certain contractual or services arrangements, has control over a Chinese operating company holding the necessary licenses [...]

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What is round trip investment? A review of China’s round trip regulations – Circular 75, M&A Rules, Circular 106

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What is round trip investment? A round trip investment （返程投资）refers to an investment made by a Chinese resident in a Chinese domestic company through an offshore special purpose vehicle (SPV). For example, where a Chinese resident sets up an offshore holding company (e.g., a Hong Kong SPV or a Cayman Islands SPV) and invests into [...]

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